Evolus (EOLS) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 net revenue of $66.9M, up 36% year-over-year, with first-ever non-GAAP operating profitability of $1.1M and Jeuveau's market share rising to 13%.

• Jeuveau® is the fastest-growing neurotoxin in the U.S. for three consecutive years, with a 70% reorder rate and 770 new accounts added in Q2.

• Raised full-year 2024 net revenue guidance to $260M–$270M, representing up to 34% growth, and targeting at least $700M in net revenue by 2028 (28% CAGR from 2023).

• Preparing for a transformative 2025 with the launch of Evolysse™/Estème dermal fillers and international expansion, including launches in Spain and Australia.

• Focused on millennial consumers and a cash-pay business model, leveraging digital platforms and loyalty programs, with the loyalty program surpassing 900,000 members.

Financial highlights

• Q2 2024 net revenue was $66.9M, up 36% year-over-year, with U.S. sales comprising over 95% of revenue.

• Gross profit margin was 70.3%; adjusted gross margin (excluding amortization of intangibles) was 71.5%.

• Non-GAAP income from operations was $1.1M, a $2M sequential improvement from Q1.

• Cash and cash equivalents at June 30, 2024, were $93.7M, following a $51.2M equity raise.

• Operating expenses (GAAP) for Q2 were $74.6M; non-GAAP operating expenses were $46.7M.

Outlook and guidance

• Full-year 2024 net revenue expected between $260M and $270M, up to 34% growth.

• Adjusted gross profit margin for 2024 expected between 68% and 71%; non-GAAP operating expenses projected at $185M–$190M.

• Expects positive non-GAAP operating income in Q4 2024 and for full year 2025, with some quarterly variability due to the filler launch.

• Projects total net revenue to reach at least $700M by 2028, a 28% CAGR from 2023.

• Anticipates regulatory approval for Evolysse™/Estème dermal fillers in Europe in late 2024 and U.S. launch in 2025.